Molten Corporation sells a single product for RM150 per unit. Total sales were 6,000 units. The company is considering a 10 percent price reduction in order to stay competitive. It is estimated that such a reduction will increase sales volume by 10 percent. Assume a 40 percent tax rate. Costs are budgeted as follows:

	COST (RM)
Direct material	30 per unit
Direct labour	20 per unit
Variable manufacturing overhead	15 per unit
Variable selling and administrative	10 per unit
Fixed manufacturing overhead	RM100,000
Fixed selling and administrative	RM80,000

Required:

Prepare a budgeted income statement for 2022 assuming that the company reduces prices as planned.

Answer rating: 100% (QA)

Solution Budgeted Income statement For 2022 Amount RM Calculation 6000 600010 150 15010 6600 135 ... View the full answer